Renowned value investor Seth Klarman just reported his first quarter portfolio. He did not buy any new stocks, but added to his positions in Idenix Pharma, NovaGold, Theravance Inc. He reduced his positions in Microsoft Corp, BP Plc. He sold out his position in GenWorth, PDLI Biopharma, Targacept Inc. As of 03/31/2012, The Baupost Group owns 20 stocks with a total value of $3 billion.

In understanding how Seth Klarman invests, we can look at his own words. He separates value investors into three categories. The first group buys cigar butt at cheap prices. The second buys high quality companies at low prices. The third buys high quality companies at fair prices. He thinks that Warren Buffett belongs to the third group; he himself belongs to the first group.

I think Seth at this time is investing with a catalyst based approach. I think Idenix has huge potential in the Hepatitis B space. Anything under 5% of his equity portfolio seems to be more equity option positions that offer a catalyst for potential growth. It's always hard to decipher what Seth is thinking on some investments. This is just my personal speculation.

Vivendi is not included since he doesn't hold the ADR most likely. In terms of GNW, I wonder if they axed it due to the quick 50%-60% run up it experienced or if they saw problems still lingering in the mortgage side?

Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.